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After much debate I decided to go with a Kindle. When I saw that the NOOKcolor was out I became intrigued.

This was immediately gone when I realized that it was an LCD screen.

What I'm wanting to know is people's opinions on e-ink vs and LCD screen and would you go with the color screen of the Nook over grayscale e-ink of the Kindle. Personally I think that the Kindle would be much better for extended reading. That is why I decided to go with a dedicated device for reading over the iPad.

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I think, iPad & Kindle are totally different kind of products. If I want to read just book I would use Kindle. For internet, video, music etc etc I use my iPad. Bottomline: Kindle is a eBooker & iPad is NOT!
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First, I think you did right by going eInk over LCD for a dedicated reader. Right now a dedicated LCD-based reader is dead as there are so many devices already out near that space: MacBook Air, Apple iPad, Samsung Galaxy, etc. In addition to being multi-reader compatible (iBooks, Kindle, B&N, etc), you get a magazine stand, pdf reader, web browser, and e-mail. All useful.

If what you are reading is linear (like fiction), nothing comes close to the Kindle, esp. the Kindle 3 (smaller, better contrast). Color e-ink is still a ways away. Right now, I'm impressed with the improvements in contrast. That's what's really important anyway for a dedicated eInk reader since in the future color books and such will probably be purchaseable on Kindle (or iBooks or Google or Nook) and viewable on a computer.

For non-fiction and reference books, the Kindle takes second fiddle to something like an iPad simply because the screen updates are slow. (Of course, nothing stops you from reading the Kindle app on the iPad). So it really depends on what you read and how much. For instance, the New Yorker on my Kindle works great, but most other magazines I prefer Zinio on my iPad.

As for me, I gave up my Kindle simply because I have an Air and iPad. I found that I only carry one device in the tablet size (iPad or Kindle) and one in the notebook size (MacBook Pro or Air) and one handheld gadget (iPhone). Different strokes for different folks. After all, I have a friend who found the Samsung Galaxy Tab pocketable.
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I have a first generation Kindle. I have never felt the need to upgrade to the newer versions. I also have an iphone and I use the Kindle app. There is no question that the e-ink is much easier on my eyes (and, of course, the battery life is much better on the kindle). Even when I turn the screen brightness all the way down, reading on my iphone for longer periods of time is hard on my eyes.
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Like a lot of people, I was in limbo between the iPad and Kindle3. While I think that the e-ink screen is indeed better for extended reading, I also like the fact that the Kindle's sole purpose is reading (mostly). Sometimes too many distractions aren't a good thing...
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